The post Brazil Mulls Crypto Cross-Border Payment Tax appeared on BitcoinEthereumNews.com. Key Notes Government officials told Reuters on Nov. 18 the move aims to close a regulatory loophole in forex transaction taxation. Central Bank published regulations Nov. 10 that classify stablecoin operations as foreign exchange transactions starting February. Crypto transactions reached 227 billion reais ($42.8 billion) in the first half of 2025, with USDT accounting for two-thirds of volume. Brazil is considering expanding its foreign exchange transaction tax to cover cryptocurrency use in international payments, government officials told Reuters on Nov. 18, as authorities seek to close a regulatory loophole in the country’s forex taxation system. The Finance Ministry is reviewing whether to apply the IOF tax to cross-border transfers using digital assets and stablecoins. The Central Bank classified these operations as forex transactions, according to Reuters’ exclusive report. The IOF (Imposto sobre Operações Financeiras) is Brazil’s tax on financial transactions, including foreign exchange. Crypto transactions are not currently subject to this tax, though investors must pay income tax on capital gains exceeding a monthly exemption. Understanding the Regulatory Gap The loophole exists because Brazilians can use stablecoins to access dollar-equivalent assets and make international payments without paying the IOF tax that applies to traditional forex operations. When users exchange reais for dollars through banks, they pay IOF tax rates ranging from 0.38% to 6.38% depending on the transaction type. Purchasing USDT to hold dollar-denominated value or sending stablecoins abroad currently avoids this taxation entirely. A Federal Police official told Reuters the tax gap enables customs evasion schemes. The official described patterns where importers might officially declare 20% of a machinery purchase value and route the remaining 80% through USDT transfers. This approach allows them to avoid both IOF taxes and import duties. The official estimated the government loses more than $30 billion in annual revenue from such practices. Market Scale… The post Brazil Mulls Crypto Cross-Border Payment Tax appeared on BitcoinEthereumNews.com. Key Notes Government officials told Reuters on Nov. 18 the move aims to close a regulatory loophole in forex transaction taxation. Central Bank published regulations Nov. 10 that classify stablecoin operations as foreign exchange transactions starting February. Crypto transactions reached 227 billion reais ($42.8 billion) in the first half of 2025, with USDT accounting for two-thirds of volume. Brazil is considering expanding its foreign exchange transaction tax to cover cryptocurrency use in international payments, government officials told Reuters on Nov. 18, as authorities seek to close a regulatory loophole in the country’s forex taxation system. The Finance Ministry is reviewing whether to apply the IOF tax to cross-border transfers using digital assets and stablecoins. The Central Bank classified these operations as forex transactions, according to Reuters’ exclusive report. The IOF (Imposto sobre Operações Financeiras) is Brazil’s tax on financial transactions, including foreign exchange. Crypto transactions are not currently subject to this tax, though investors must pay income tax on capital gains exceeding a monthly exemption. Understanding the Regulatory Gap The loophole exists because Brazilians can use stablecoins to access dollar-equivalent assets and make international payments without paying the IOF tax that applies to traditional forex operations. When users exchange reais for dollars through banks, they pay IOF tax rates ranging from 0.38% to 6.38% depending on the transaction type. Purchasing USDT to hold dollar-denominated value or sending stablecoins abroad currently avoids this taxation entirely. A Federal Police official told Reuters the tax gap enables customs evasion schemes. The official described patterns where importers might officially declare 20% of a machinery purchase value and route the remaining 80% through USDT transfers. This approach allows them to avoid both IOF taxes and import duties. The official estimated the government loses more than $30 billion in annual revenue from such practices. Market Scale…